Episode 65: What Happens When Interest Rates Rise?
You don’t have to look very hard these days to realize the economy has taken a big shift in recent months. Inflation is running rampant, prices on just about everything have gone up, the stock market is down, and of course real estate is not immune from the macro market forces at work. Mortgage interest rates have gone up over the last couple months, and housing inventory is increasing, and the historic hot market we have been in is starting to cool off a little bit. The housing market cooling down is not necessarily a bad thing, especially if you’re a buyer. Yes, you are looking at higher interest rates than a year ago, but inventory is inching up, prices are decelerating, not decreasing, and there is less competition. Instead of competing with 15 offers buyers are only competing with 2-4. And guess what? Home inspections are back! This is great for buyers. Sellers on the other hand, you are going to have to do a little more work to sell your house than a year ago. You’re going to have to make sure it’s cleaned up, it presents well, and it’s priced right. All that being said, we are not seeing signs of a major downturn, the market is just moving back to a more neutral place than it has been the last few years. Have no fear, we are here to give you some tips to help guide you to success whether you are buying or selling. Let’s dive in!